Reading Buy-to-Let 2023 Guide

Rightmove reports that the average sale price of Reading properties in the last year is £430,284. This is 7% up on the previous year and 14% on 2020 prices.

While house prices are generally higher in the South East compared to the rest of the UK, Reading prices are lower than the area average, suggesting it is possible to find a good deal.

According to Zoopla’s July 2023 UK House Price Index, house prices fell in the South East compared to last year, following a recent trend of sluggishness across the country, especially in the south of England. 

But future property market predictions point to a return to growth, so it could be worth investing now rather than later to maximise potential returns on capital value.

For more on this, consult our UK House Price Index.

Regarding key areas for buy-to-let investments, Reading Town Centre is popular with students and gives easy access to London for commuters.

There are also many attractive residential locations to the east. For instance, Earley is convenient for the nearby Thames Valley Business Park, a Reading employment hotspot. Woodley is a large suburb, popular with families and commuters, with its own self-contained community and amenities. Winnersh is convenient for transport links thanks to Winnersh and Winnersh Triangle train stations.

In the north of Reading, on the other side of the River Thames, you can find more expensive areas such as Caversham.

Average Property Prices in Caversham

The average property price in Caversham is £515,566.

Average Rental Yield in Caversham

The average rental yield in Caversham is 3.61%.

Average Property Prices in Woodley

The average property price in Woodley is £462,574.

Average Rental Yields in Woodley

The average rental yield in Woodley is 4.38%

(Averages taken from Rightmove, rental yield average calculated with figures from housesforsaletorent.co.uk)

Regeneration

Ambitious regeneration projects can create job opportunities, help the local population grow, and positively affect capital growth, making them good news for property investors. 

Reading has been attracting many investments, thanks to increasing interest in the area, and several developments have been put forward targeting the Reading Town Centre. For example, two of Reading’s retail parks are being transformed into residential quarters. The Kings Meadow View and Reading Station Hill projects will create over one thousand new homes and revamp these ailing locations. 

The area around Queen Victoria Street and Friar Street, described as the ‘Heart of Reading’, is undergoing an extensive regeneration programme, set for completion by 2050. The Oracle shopping centre will also be transformed into new build apartments, a revitalised retail space, a new cinema and a co-working space.

For details on sustainability and property, take a look at our guide to Liverpool regeneration in 2023.

England’s ‘Silicon Valley’

The strong employment prospects in Reading keep demand for rental properties high and are expected to improve even further, owing to the town’s reputation as a hub for the UK tech sector.

Also known as the UK’s Silicon Valley – due to the high concentration of tech and finance companies in the area – Reading’s M4 Corridor is home to companies such as Cisco, M&G, Hibu and Ericsson, among others.

The Thames Valley Business Park is located on Reading’s eastern outskirts and accommodates over 20 major companies, including Microsoft and Oracle.

A Hotspot for London Commuters

As mentioned, Reading is a popular place for London workers living outside the capital. Living in London often comes with a luxury price tag, so property prices and rents in Reading are generally cheaper, and the cost of living is generally more affordable.

With the opening of the Elizabeth Line in 2022, the commute has become even faster and easier, with average journey times of around 45 minutes and the quickest route taking a mere 23 minutes.

Reading is a traditional commuter town, and this reputation is getting even more substantial as more renters try to escape the high living costs of London investment properties, subsequently driving up demand, rents, and capital value.

We have added some other Regional Buy To Let guides below:

1. Islington Buy to let guide

2. Leicester property investment guide

3. Birkenhead property investment guide

4. Coventry property investment guide